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Cryptocurrency mining is a critical part of the functioning of any crypto network. Many companies have entered the cryptocurrency mining industry, and these are usually found in areas with cheap electrical power.
Crypto mining is done using highly powerful computer systems and these need a significant amount of electricity to run.
Armenian company illegally mining crypto
An IT company in Armenia has been accused of running an illegal cryptocurrency mining scheme. The company is said to have set up shop inside a hydroelectric power plant where they had no authorization to operate from.
According to the Armenian National Security Service, the IT company has been operating illegally from this hydroelectric power plant for over a year.
The state agency said that the crypto mining firm installed its equipment in one of the power plants operated by the government of Armenia.
Over a period of one and a half years, the company is said to have illegally used 1.5 kilowatt-hours of electrical power. This electricity is worth over $150,000 in the country.
The IT company may be required to pay this amount to the government and face other legal action that may be instituted by the authorities.
Crypto mining bans
Crypto mining enterprises around the world are under threat as many governments seek to end the activity within their borders.
Due to the high amount of electricity that is needed to run crypto mining equipment, some governments are moving to ban the business and preserve their electrical supply systems.
China carries most of the world’s Bitcoin mining power, with about 72% of all mining power in the world found in the Asian country.
The country may be looking to ban crypto mining as government policies shift from being crypto-friendly to being anti-crypto.
Recently, authorities in Inner Mongolia, an autonomous region in China, announced that they would be moving to ban crypto mining activity in the area.
Reports coming out of China suggest that the ban in Inner Mongolia may be the first step in the broader crypto ban that is coming in the country.
Chinese authorities are reportedly investigating crypto mining businesses in the Sichuan region which houses over 70% of the crypto mining companies in China.
The district has cheap hydroelectric power from the Dadu River Basin, and this affordable energy makes crypto mining in the region highly profitable.
If these businesses are shut down, it will affect crypto activity across the world.